CSLB Warns Southland Homeowners to Avoid Risky Business

SACRAMENTO – It’s not unusual for homeowners to hire unlicensed contractors because they think the cost will be lower than what they’d pay to hire a legitimately licensed and qualified contractor. But, an undercover sting operation conducted by the Contractors State License Board (CSLB) this past week in Los Angeles shows that’s not necessarily the case.

During the operation, SWIFT investigators posed as homeowners and invited alleged unlicensed contractors to bid on home improvement projects, including painting the home’s exterior and garage, replacing a water heater, and installing a new electrical circuit breaker.

A total of 11 suspected unlicensed contractors, including one whose license was previously revoked, were arrested after providing bids that ranged from $3,200 to $18,000. That’s far above the $500 limit at which a state license is required.

What was most surprising for investigators is the range of bids for the same work. One suspect, whose license was revoked in February 2017, bid $3,700 for all three jobs described above; while another unlicensed contractor, who claimed to have painted large mansions in Beverly Hills, Bel Air, and Malibu, bid $18,000 to only paint the exterior of the 1,100 square foot home, adding that it would take his crew four to six weeks to complete the job.

“Homeowners shouldn’t get caught in the trap of thinking it will cost them less money to hire an unlicensed contractor,” said CSLB Registrar Cindi Christenson. “Not only can their bid be equal to or greater than a legitimately licensed contractor, you may have to pay twice for the job if they mess up and you have to hire someone else to correct the mess they leave.”

The eleven people caught in the undercover operation could now face two different misdemeanor charges. The first is contracting without a license (Business and Professions Code (BPC) section 7028). Penalties for first-time convictions include up to six months in jail and/or up to $5,000 in fines. The second potential charge is illegal advertising (BPC 7027.1). Contracting law requires unlicensed operators to state in all advertising that they are not licensed. Unlicensed contractors can advertise for jobs below $500 if their ad states that they are not licensed. The penalty for this is a fine of $700 to $1,000.

CSLB encourages consumers to always “Check The License First” by visiting www.cslb.ca.gov or calling its toll-free automated line: 800.321.CSLB (2752). Also, visit CSLB’s website for tips about how to hire a contractor and to sign up for CSLB Email Alerts.

The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. CSLB licenses and regulates almost 290,000 contractors in California, and is regarded as one of the leading consumer protection agencies in the United States. In fiscal year 2015-16, CSLB helped recover about $41 million in ordered restitution for consumers.

This Google translation feature is provided for informational purposes only; CSLB is unable to guarantee the accuracy of this translation. Please consult a professional translator for accuracy if you are using this site for official business.